A planning model of a creamery.
Current, Donovan C.
Raphael, David L.
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Many creameries are operated by managers who, through experience, have generated rules of thumb that are very accurate for predicting product flows and input requirements to meet estimated demand. As the number of different products grows, however, the task becomes more difficult. Therefore, a model in matrix form showing the flows of different products of a creamery is a useful management tool. With such a matrix, managers can be much more flexible in using forecasted consumer demand to predict internal flow volumes and raw material requirements. The matrix, when converted to butterfat pounds as the flow unit, could also be used as a comparison (or as a source) for the butterfat accounting which is required by most regulatory agencies. If the matrix were set up in the proper format, it could be used as a basis for a linear flow model similar to advanced economic models which would give management an additional tool for strategic planning. This paper demonstrates the construction of a flow matrix in its basic form for The Pennsylvania State University Creamery. It presents an example of use of the matrix as a planning tool. Finally, it presents thoughts on the future development of such models.
This thesis document was issued under the authority of another institution, not NPS. At the time it was written, a copy was added to the NPS Library Collection for reasons not now known. It has been included in the digital archive for its historical value to NPS. Not believed to be a CIVINS (Civilian Institutions) title.
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